The following data have been collected for the month of April by a company which operates a standard absorption costing system:

Opening and closing work in progress figures were identical, so can be ignored.
You are required to:

(a) prepare for the month of April a statement of total standard costs for product EM;

(b) prepare a standard product cost sheet for one unit of product EM;

(c) calculate the number of units of product EM which were budgeted for April;

(d) state how the material and labour cost standards for product EM would originally have been determined.

Transcribed Image Text:

Actual production of product EM Actual costs incurred: Direct material E 660 metres Direct material M 200 metres Direct wages 3200 hours Variable production overhead (which varied with hours worked) Fixed production overhead 600 units () 6270 650 23 200 6720 27 000 Variances () Direct material price: Material E 330 F Material M 50 A Direct material usage: Material E 600 A Material M nil Direct labour rate 800 A Direct labour efficiency 1400 A Variable production overhead: expenditure 320 A efficiency 400 A Fixed production overhead: expenditure 500 F volume 2500 F